‘Double-dipping’ dismissal damages struck down (Legal view)

Fired employee not entitled to both salary and disability benefits in lieu of reinstatement: Court
By Jeffrey R. Smith
|Canadian HR Reporter|Last Updated: 05/19/2009

A Newfoundland and Labrador worker was entitled to wrongful dismissal damages instead of reinstatement but has been awarded too much compensation, according to the Newfoundland and Labrador Supreme Court.

Leonard Stead was employed by IMP Group at its airplane parts factory in Gander, Nfld., as a deputy crew chief. On Jan. 22, 2007, after seven years, his employment was terminated for cause and he filed a claim for wrongful dismissal.

As part of his claim, Stead demanded severance pay under the collective agreement, which stipulated any employee who had worked more than 12 continuous months at IMP would receive one week’s pay for each year of service upon termination. The provision didn’t distinguish between termination with or without cause. Stead also demanded the equivalent of his salary until his planned retirement date in 2014.